Forms of Business Units

Syllabus tag: KCSE | Business Studies | Form 2 | Topic 8 Forms of Business Units

Lesson objectives

By the end of this topic, you should be able to:

• Describe the sole proprietorship and the partnership and their features.
• Explain the principles and types of co-operative societies.
• Describe limited liability companies, their formation, types and dissolution.
• Describe public corporations and the role of the stock exchange.

Summary

Business units differ chiefly on who owns them, who bears the losses and whether the business is a separate legal person. Sole traders and partnerships have unlimited liability and are not separate from their owners. Companies and co-operatives are incorporated, giving them separate legal personality and limited liability — the single most important distinction in the topic.